Starting March 1, prices in pharmacies for the 100 most popular items will decrease by 30%. This news was long-awaited for Ukrainians, as the cost of medicines was a painful issue for many. However, behind this initiative there are many nuances that are worth considering. Regulation of the pharmaceutical market can cause not only positive changes, but also possible risks associated with the availability of other medicines. About the features of this decision, control mechanisms and possible consequences told Deputy Minister of Health of Ukraine Edem Adamanov.
Why did they decide to adjust prices right now?
As the deputy minister noted, this decision cannot be called a classic regulation. In Ukraine, there is a practice of controlling markups on medicinal products included in the national list. In addition, the prices of drugs purchased with budget funds through the “Prozoro” system were regulated. However, in the pharmacy retail segment, prices remained completely free.
Adamanov emphasized that the market analysis showed a significant increase in prices for certain categories of drugs, which exceeded the level of inflation. Since medicinal products are goods of social importance, the state could not remain aloof. It was decided to find out at what price the manufacturers sell drugs, as well as what markups pharmacy chains set for them.
“We proposed to the deputies to introduce a national catalog of prices, from which the calculation of mark-ups begins, as well as a system of external referencing. This means that we will compare the prices of medicines with similar ones in the countries of Eastern Europe in order to prevent their overestimation in Ukraine.” – said the deputy minister.
How was it determined which drugs will be cheaper
As Adamanov emphasized, the list of 100 items for which prices will be reduced was proposed by Ukrainian manufacturers themselves. The Ministry of Health did not interfere in its formation, but conducted analytics on which drugs are most often bought by Ukrainians.
“We analyzed the data of two independent analytical agencies — Proxima Research and SMD. They provided statistics on the volume of drug sales in both quantitative and financial terms. It was on the basis of these data that the final list was formed.” – Adamanov said.
He also added that some of the drugs on the list are not drugs in the classical sense and do not have proven effectiveness. However, they were still included in the list, as they remain popular among Ukrainian consumers.
Will it affect the prices of other drugs
A separate question is whether the prices of other medicines will rise after the introduction of the new policy. Adamanov stated that the government has already provided safeguards to avoid such a scenario.
“We made changes to the law on medicinal products, which were supported by the Verkhovna Rada in the second reading. We also updated Cabinet Resolution No. 955, which regulates mark-ups. Now the control extends not only to drugs from the national list, but also to all drugs sold in pharmacies, both prescription and over-the-counter.” he declared.
According to the deputy minister, the new control mechanisms should not only reduce the prices of popular drugs, but also prevent speculative price increases of other drugs.
Will manufacturers compensate for price reductions at the expense of other medicines
Given the fact that some drugs will become cheaper by 30%, the question arises: will manufacturers not try to compensate for these losses by raising the prices of other drugs? According to Adamanov, the law provides for special safeguards.
“First, manufacturers must declare the price of drugs. Second, external referencing works: if, for example, in Romania, ibuprofen costs the equivalent of 100 hryvnias, then in Ukraine it cannot be more expensive. A similar approach is applied to all other countries, based on which reference prices are calculated”, he noted.
Adamanov also emphasized that the economic situation of producers is different, but they will not work at a loss.
“If manufacturers have voluntarily agreed to lower prices for a certain list of drugs, then they can afford it. It may be more difficult for them, but it certainly will not put them at risk of closure.” he declared.
What’s next
The Ministry of Health assures that lowering the prices of popular medicines is only the first step. Further changes will involve more systemic pricing reforms, including expanding price controls for other drug categories and strengthening the state’s Affordable Medicines program.
“We want every Ukrainian to have access to high-quality and affordable drugs. This is not a one-time initiative, but a comprehensive approach aimed at reducing the financial burden on citizens.” Adamanov concluded.
